Correlation Between Citigroup and Multi-index 2010
Can any of the company-specific risk be diversified away by investing in both Citigroup and Multi-index 2010 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Multi-index 2010 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Multi Index 2010 Lifetime, you can compare the effects of market volatilities on Citigroup and Multi-index 2010 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of Multi-index 2010. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Multi-index 2010.
Diversification Opportunities for Citigroup and Multi-index 2010
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Multi-index is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Multi Index 2010 Lifetime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Index 2010 and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with Multi-index 2010. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Index 2010 has no effect on the direction of Citigroup i.e., Citigroup and Multi-index 2010 go up and down completely randomly.
Pair Corralation between Citigroup and Multi-index 2010
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.04 times more return on investment than Multi-index 2010. However, Citigroup is 7.04 times more volatile than Multi Index 2010 Lifetime. It trades about 0.21 of its potential returns per unit of risk. Multi Index 2010 Lifetime is currently generating about 0.15 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Multi Index 2010 Lifetime
Performance |
| Timeline |
| Citigroup |
| Multi Index 2010 |
Citigroup and Multi-index 2010 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Multi-index 2010
The main advantage of trading using opposite Citigroup and Multi-index 2010 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Multi-index 2010 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Multi-index 2010 will offset losses from the drop in Multi-index 2010's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Multi-index 2010 vs. Trowe Price Retirement | Multi-index 2010 vs. T Rowe Price | Multi-index 2010 vs. T Rowe Price | Multi-index 2010 vs. T Rowe Price |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |